Scott Fitzgerald is breaking with Gov. Scott Walker over funding for the University of Wisconsin System. / AP Photo/Wisconsin State Journal, John Hart, file

Written by

Scott Bauer and Carrie Antlfinger,

Associated Press

WAUKESHA – Gov. Scott Walker began to hedge Thursday on his initial proposal to boost the University of Wisconsin System’s budget by $181 million, saying most of that money may be redirected to pay for a tuition freeze or boost funding for public schools.

Walker had proposed in February that UW get the increase over the next two years. Earlier this week, he said he was committed to that because it helps economic development. Walker, along with Fitzgerald and a bipartisan group of lawmakers, has called for a two-year tuition freeze at UW.

University President Kevin Reilly proposed a 2 percent tuition increase in each of the next two years.

But last week the nonpartisan Legislative Fiscal Bureau released a memo showing the system finished the year that ended June 30, 2012, with a nearly $650 million surplus spread across multiple accounts at system schools, including $414.1 million in surplus tuition.

Later Thursday, Walker backed off his original proposal, saying he wanted to keep an approximate $20 million increase for economic development for the system. The other $160 million could go toward a tuition freeze, public schools and other high priorities, he said.

“Having dollars that are tied to helping us particularly in careers where there are shortages in the state, I’d still like to see that intact,” he said after an appearance at a Waukesha school where he was trying to drum up support for voucher schools.

Walker has said he planned to revise his budget proposal for UW within the next week to call for the tuition freeze and other unspecified changes.

UW System spokesman David Giroux said Thursday he would wait until he saw the details on the amended budget before offering any comments. On Wednesday he said that “the governor, the regents, and all legislators have a shared interest in holding down the cost of college. We’ll have to look carefully at the details, as they emerge, but we’re willing to work with state leaders on this.”

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UW’s reserves grew at the same time that it raised tuition 5.5 percent annually since the 2007-2008 academic year.

The Legislature’s Joint Finance Committee began taking votes on Walker’s budget Thursday, but did not take up the university’s portion. That likely won’t come up until May.

The committee’s Republican leaders told reporters before voting began that they support a tuition freeze. But Rep. John Nygren, R-Marinette, and Sen. Alberta Darling, R-River Hills, wouldn’t commit to Fitzgerald’s call to reduce system funding.

“That’s a topic for another day,” Darling said. “We’re working on it.”

Nygren said the committee would not look to pull money from the system’s reserves to fund other state programs unrelated to the universities.

The Legislature’s audit committee’s Republican leaders, meanwhile, spent Thursday preparing an order calling on state auditors to undertake a comprehensive review of the surplus.

Democrats joined with Republicans on Wednesday in calling for a two-year tuition freeze at UW. A group of 35 Democrats sent a letter to UW leadership saying raising tuition was unjustifiable in light of the surplus and would hurt struggling Wisconsin families.

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Bauer reported from Madison. Wis. Todd Richmond also contributed to this report from Madison, Wis.